Bitcoin Completed Bottom at $114.7K: Pro traders continue to buy

The key takeaways

• Bitcoin option skews and stabilitycoin activity indicate that fear is contained. This indicates limited downward pressure.

• Spot BTC ETFs and trader positions indicate liquidity and resilience.

BitcoinBTCOn Monday, the price of Bitcoin fell to $114.755, a level not seen in 11 days. This sparked a debate on whether or not Thursday’s high mark signaled the beginning of an end for the bull run. Four distinct indicators indicate that the correction may only be temporary, and Bitcoin could soon reach the $120,000 level. 

It is important to note that the word “you” means “you”. Bitcoin options The skew index reached its highest level in the last four months. This indicates a sudden, excessive and unfounded fear. Under balanced conditions, skew would move between -6 % and +6 %. As demand increases for protective puts, the indicator rises above neutral, but periods of FOMO can push it down.

The history shows that such events can often lead to strong opportunities for buying. A similar spike in skew was followed on Aug. 5 by a rally of $9,657 within 6 days. When Bitcoin fell to $74,587 in April, the skew reached 13%. This set the stage for an 11474-dollar recovery within four days.

Some investors fear that Bitcoin will soon be out of spot. exchange-traded funds ETFs could start, particularly after the seven-day streak of inflows ended last Friday. The panic, however, seems to be misplaced. The panic is misplaced.

Since spot Bitcoin ETFs are a market of $152 Billion, 1% outflows or inflows should be seen as normal. Due to the reduced volatility of recent months, there is enough liquidity for large ETF redemptions. It is noteworthy that the last time Bitcoin moved over 12% in less than 72 hours occurred on April 7th.

Bitcoin’s top traders have not reduced their longs. This reinforces the bullish hypothesis

Top traders on OKX and Binance have not shown much reaction to recent price drops. These data include spot, margin, and futures marketsIt offers a wider view on how players in the profession are placed.

In spite of the top traders reducing their longs on Thursday, they have since stabilised. Some traders may say they hesitated to purchase the dip of $115,000 but it’s equally likely that they were waiting for an eventual retest at $112,000, before investing additional capital.

Demand for stablecoins in China provides additional perspective. Retail activity typically pushes stablecoins up to a 2 percent premium over the US dollar official rate. In contrast, discounts above 0.5% are often the result of traders selling their crypto.

Related: Strategy adds $51M in Bitcoin as price hit $124K ahead of sharp dip

Currently, the Tether (USDT() is trading at a discount of 0.8% in China. This indicates a mild push to exit the crypto market. Still, this figure remains unchanged since Friday, which indicates that sentiment has not worsened.

Taken together, these four metrics — options skew, ETF flows, top trader positioning, and stablecoin demand — suggest Bitcoin’s pullback was a temporary setback and point to $114,755 being the likely bottom of this correction.

This article was written for general information, and not to provide investment or legal advice. These are solely the opinions, views and thoughts of the author and may not reflect the opinions and views of Cointelegraph.